This ETF tracks the S&P Global Clean Energy Index and includes companies that produce solar, wind and other renewable power sources globally, including power generation players. The company is a “best-in-class wind developer company,” Underhill says. Accessed Aug. 21, 2020. Despite some challenges in 2020 from the pandemic for new renewables deployment, renewable energy is compelling for investors. Its top-five sector allocations are 14.77% industrial, 46.34% technology, 6.19% utilities and 12.14% consumer cyclical. Accessed June 22, 2020. Accessed June 22, 2020. Accessed June 22, 2020. Investopedia requires writers to use primary sources to support their work. Accessed June 22, 2020. While there is a host of potential companies across the value chain in both the U.S. and Europe that are levered to the offshore wind theme, Vestas is “well-positioned overall as a manufacturer of equipment,” Underhill says. Copyright © 2020 by WTOP. “This will keep customer bills affordable, lower emissions and present an attractive investment opportunity for shareholders,” he says. "Fidelity® Select Environment and Alternative Energy Portfolio: Composition." "Cleantech”—short for “clean technology”—refers to various companies and technologies that aim to improve environmental sustainability. Blockchain exchange-traded funds (ETFs) facilitate real-time trading on a basket of blockchain-based stocks. Each fund goes about its investment strategy in different ways, and offers various levels of diversification versus focus on alternative energy investments. We also reference original research from other reputable publishers where appropriate. NALFX seeks to provide long-term capital appreciation by investing at least 25% of its total net assets, under normal market conditions, in equity securities of alternative energy companies. As of March 2020, its industry allocations are 65.3% renewable energy power producers, 8.4% wind turbines, 8.2% energy conservation, 4.4% sustainable energy financial services, 4.3% water systems and utilities, 3.3% energy storage, .8% transportation, .3% solar photovoltaic, and 5% other assets. It has returned 10.4% since inception, and 10.4% over the past 5 years, on an annualized basis, with a beta of 0.74.. Investors who want to gear up for the potential rise in alternative energy stocks should consider these mutual funds. "YCharts." The fund has returned nearly 12% since inception with a beta of 1.26.. The companies selected by its subadviser are part of a proprietary group of green economy companies. Since TAN owns fewer companies, the price can be more volatile than other renewable energy funds with a larger number of companies. For those seeking investments in green or renewable energy, several mutual funds now exist. "New Alternatives Fund Shares (NAEFX)." Guinness Atkinson. The company announced in June that it will invest $4.5 billion during the next four years in France to develop renewable energy, including onshore wind, solar photovoltaic and offshore wind capacity auctions. The QQQQ is the original ticker symbol for the Nasdaq 100 Trust that seeks to gain exposure to the technology sector. Accessed June 22, 2020. NEXTX is advised by Shelton Capital Management and subadvised by Green Alpha Advisors LLC. The fund charges an above-average annual net expense ratio of 1.34%. It charges a high annual net expense ratio of 1.98%. The fund requires a minimum investment of $2,500. The offers that appear in this table are from partnerships from which Investopedia receives compensation. The Shelton Green Alpha Fund (NEXTX) was issued by Shelton Capital Management on March 12, 2013. Since NEXTX is a fairly new mutual fund, it is best suited for highly risk-tolerant sophisticated investors. It has generated an annualized total return of 5.52% over the past five years and an annualized return of 1.59% during the past three years. With the ongoing discussions of climate change, FSLEX is poised to rise over the long run. "Invesco Solar ETF." Fidelity. Guinness Atkinson. Despite some challenges in 2020 from the pandemic for new renewables deployment, renewable energy is compelling for investors. NEE is a utility company that owns Florida Power & Light Co. and Gulf Power Co., along with wind and solar assets. U.S. News & World Report | @usnews. ICLN’s inception date is June 24, 2008, AUM is $667.5 million and expenses are 0.46%, or $46 for every $10,000 invested. A growing number of sustainable energy investments are available for investors who want exposure…. The next opportunity for the company is to increase adoption of renewable energies, particularly solar, and allow FPL to further reduce its cost base, he says. Guinness Atkinson. The ETF's top holdings include Tesla Inc. (TSLA), the electric vehicle maker; NIO Inc. (NIO), the Chinese electric vehicle company; and Solaredge Technologies Inc. (SEDG), a maker of components for photovoltaic arrays., This ETF tracks the WilderHill Clean Energy Index, providing exposure to multi-cap U.S. companies engaged in the business of advancing cleaner energy and energy conservation. A growing number of sustainable energy investments are available for investors who want exposure to renewable energy stocks and exchange-traded funds. Accessed June 22, 2020. "Firsthand Alternative Energy Fund Top 10 Holdings." “As consumers migrate towards renewable energy sources, it may change the composition of inflation, reducing the power of traditional oil and energy to hedge inflation, so investors will need renewable energy to hedge against inflation in the long term,” Gunzberg says. The best alternative energy ETF for Q4 2020 is the First Trust NASDAQ Clean Edge Green Energy Index Fund (QCLN). Accessed June 22, 2020. Accessed June 22, 2020. Brookfield Renewable Partners also has a strong track record in value-creating mergers and acquisitions and efficient operations, he says. Accessed June 22, 2020. NEXTX invests in common stocks of companies that its subadviser deem to be leaders in managing environmental opportunities and risks, have above-average growth potential and are not overvalued. Fidelity Select Environment and Alternative Energy Portfolio, various clean energy-related business activities, Fidelity® Select Environment and Alternative Energy Portfolio: Fees & Distributions, Fidelity® Select Environment and Alternative Energy Portfolio: Average Annual Total Returns, Environment and Alternative Energy Portfolio/FSLEX Summary Prospectus April 29, 2020, Fidelity® Select Environment and Alternative Energy Portfolio: Composition, Firsthand Alternative Energy Fund: View All Tabs, Firsthand Alternative Energy Fund Complete Portfolio, Firsthand Alternative Energy Fund Holdings by Industry, Market Cap, and Country, Firsthand Alternative Energy Fund Top 10 Holdings. In 2019, FPL unveiled plans to increase solar generation from 1% in 2018 to 15% in 2028. To achieve its investment objective, GAAEX invests at least 80% of its total net assets in equity securities of U.S. and foreign alternative energy companies. The fund's top industry allocations are 31.15% industrials, 24.28% technology, 22.91% utilities, 10.85% consumer cyclical, and 5.68% basic materials., As of January 2020, GAAEX carried a beta of 1.14, and has returned a loss of 8.27% annualized since inception, making it a laggard against the S&P 500 - but bear in mind that GAAEX's benchmark index of green energy indices has lost 13% over the same period, so it has in fact outperformed.  , The Firsthand Alternative Energy Fund (ALTEX) was issued on Oct. 29, 2007, by Firsthand. ALTEX is advised by Firsthand Capital Management Inc. ALTEX's turnover rate was 0% in 2019. Fidelity. These include white papers, government data, original reporting, and interviews with industry experts. One of the company’s strengths is the long-lived nature of hydro assets of around 100 years and the potential to complement wind and solar generation, de Lamaze says. GAAEX's investment objective is to provide long-term capital appreciation. Accessed June 22, 2020. The fund targets companies represented in a wide variety of green energy sub-sectors, including solar energy, biofuels, and advanced batteries, among others. "Shelton Green Alpha Fund: View All Tabs." Guinness Atkinson. Deep Dive Here are the clean-energy ETFs and stocks that are soaring in 2020 Published: Sept. 29, 2020 at 1:30 p.m. However, FSLEX has a beta of 1.14, making it riskier than the S&P 500 index. ETFdb.com. The best alternative energy ETF for Q4 2020 is the First Trust NASDAQ Clean Edge Green Energy Index Fund . As activists push for alternative energy to become more ubiquitous, companies in the energy sector are also seeing demand for green products, from solar panels to wind turbines. These include white papers, government data, original reporting, and interviews with industry experts. Firsthand. This means that PBW includes tech companies as well as industrials, materials, utilities, and stocks from other sectors. "Alternative Energy Fund: Performance." There is the potential for a strong upside for renewable energy, such as companies that produce solar or wind energy, says Jodie Gunzberg, managing director, chief investment strategist at Morgan Stanley, Wealth Management Institutional. "Areas of Investment." Investors are using new and improved metrics to measure current portfolio emissions to better gauge how to move toward a net zero portfolio, Gunzberg says. Alternative energy equity mutual funds provide investors with professionally managed exposure to many companies involved in various clean energy-related business activities such as solar, hydrogen, wind, geothermal and hydroelectric. Firsthand. New Alternatives Fund. Accessed June 22, 2020. The Fidelity Select Environment and Alternative Energy Portfolio (FSLEX) was issued by Fidelity Investments on June 29, 1989. As of May 2020, FSLEX has generated an average annual return of 4.40% since its inception. We also reference original research from other reputable publishers where appropriate. NEE trades at a 50% premium compared with regulated utilities on 2022 price to earnings, “implying that investors are willing to assign a significant growth premium to the management team,” says Michael Underhill, chief investment officer at Capital Innovations in Wisconsin.